Cambior dumps Carlota

Cambior (CBJ-T) will take bids for the Carlota copper project, having decided the base metal project is not a core asset.

Situated in Arizona’s Gila Cty., Carlota has a probable reserve of 91 million tonnes grading 0.39% copper. Feasibility studies, most recently in 1996, suggested it could be exploited by an open pit and its ore treated by solvent extraction-electrowinning over a mine life of 10 years.

Discussions in 2003 with BHP Billiton (BHP-N), which operates the nearby Pinto Valley copper mine, did not succeed in bringing the project on-stream.

The study estimated annual production of 31,000 tonnes and a cash production cost of US$1,200 per tonne (US54 per lb.). It would have taken US$90 million to US$100 million to put the deposit into production.

Permits are in place and the feasibility study estimates construction time at 18 months. Cambior intends to use the proceeds of the sale to develop its existing gold projects and acquire others.

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